Johannesburg - Arms group Denel said on Monday it had been awarded a contract by aerospace giant Boeing Co to manufacture parts for the Boeing 747 and other commercial planes for an undisclosed amount.

Under the contract signed on Monday, Denel's aviation division will manufacture about 400 parts a month for Boeing over nine years. Boeing will transfer capital and ownership to Denel Aviation.

This is the first contract of its kind between Denel Aviation and Boeing.

"Given the fact that the US represents the largest aerospace market in the world, I am confident that our relationship with Boeing will open doors to further business opportunities there and elsewhere," said Denel deputy chief executive Max Sisulu.

Denel Aviation will initially produce parts mostly for the Boeing 747 as well as for the Boeing 767. Production is expected to start towards the end of this year.

Denel Aviation was scaled down to become a Boeing supplier after an extensive process of audits, workgroup meetings, bidder boards and submission of proposals.

"The Boeing Company believes that the measure of a company is not only the quality of its products and services but also the strength of its partnership with the communities it serves," said Doug Groseclose, a senior vice president at Boeing.

Denel is already in partnership with BAE Systems, Sweden's SAAB and France's Turbomeca. BAE Systems and SAAB together won an order in 1999 for nine Gripen fighters, with an option on a further 18, as part of US$4.8bn arms procurement package.

With acknowledgements to www.news24.co.za